Two Funds for a Retirement Paycheck

Investors know they can't generate sufficient income from a traditional portfolio of CDs, bonds, and market markets; the yields are too low, notes Bob Carlson, editor of Retirement Watch.

Here's a look at two new additions to our Retirement Paycheck portfolio which seek high income without stretching for yield.

We are recommending Cohen & Steers Infrastructure (UTF), which used to be a utility stock fund. However, a few years ago, it switched to one that invests in infrastructure companies, especially those that have utility-like characteristics.

It looks for companies that provide part of the physical framework, such as utilities, pipelines, tolls roads, airports, ports, and telecommunications. Its primary goal is high current income.

We're buying these companies at a discount because the fund sells at an 11% discount to net asset value, which is a little above its long-term average discount. The fund uses about 27% leverage to produce a yield of 6.96%.